EX-12.1 6 nke-5312015xexhibit121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

EXHIBIT 12.1 NIKE, Inc. Computation of Ratio of Earnings to Fixed Charges

The following disclosure reflects the Company's continuing operations:

| Year Ended May 31,
(In millions) | 2015 |  | 2014 |  | 2013 |  | 2012 |  | 2011
Net income from continuing operations | $ | 3,273 |  |  | $ | 2,693 |  |  | $ | 2,451 |  |  | $ | 2,257 |  |  | $ | 2,163 |
Income tax expense | 932 |  |  | 851 |  |  | 805 |  |  | 754 |  |  | 689 |
Income before income taxes | 4,205 |  |  | 3,544 |  |  | 3,256 |  |  | 3,011 |  |  | 2,852 |
Add fixed charges: |  |  |  |  |  |  |  |  |
Interest expense(1) | 60 |  |  | 58 |  |  | 23 |  |  | 31 |  |  | 32 |
Interest component of leases(2) | 59 |  |  | 53 |  |  | 48 |  |  | 42 |  |  | 39 |
TOTAL FIXED CHARGES | 119 |  |  | 111 |  |  | 71 |  |  | 73 |  |  | 71 |
Earnings before income taxes and fixed charges(3) | $ | 4,324 |  |  | $ | 3,655 |  |  | $ | 3,327 |  |  | $ | 3,084 |  |  | $ | 2,923 |
Ratio of earnings to total fixed charges | 36.3 |  |  | 32.9 |  |  | 46.9 |  |  | 42.2 |  |  | 41.2 |

(1) | Interest expense includes interest both expensed and capitalized.

(2) | Interest component of leases includes one-tenth of rental expense which approximates the interest component of operating leases.

(3) | Earnings before income taxes and fixed charges includes amortization of capitalized interest.